tell your friend to take out all but 5k, trade 1 lots,$400 a day, is doable,with 1 lots he will have to drive slow around the track to stay in the race, when he starts to win 80% of the time he can add on to his trade 1 at a time so he's closing out with a 2 lot, then a 3 lot. If he can do this he'll be making 3k a week in no time, 3k times 50 weeks is 75k. If his acct gets down to 2500 he'll see where his mistakes are sooner,than if he's got the whole wad in there. I'm sure he feels or knows he can trade,but being able to drive to 7-11 for smokes doesn't make you an indy 500 top ten driver,a 1 lot in the spus has a 30 point range a day, $1500, thats not counting all the chop, thats a lot different than a stock that moves 30 cents in a week. First learn how to trade it then up your speed,size. You have to use stops unless your superman at disciplining yourself on mental stops,and you have to pick your spots,maybe 5 obvious ones a day. It can be done and it will look easier 3 months from now, if he can stay in the game.
Very good input. That's the issue for most with leverage, they tend to go ballz to the wall instead of slow and steady.
The first reply on this thread by volente_00 is the best one. You cannot trade worrying about money. I've tried for years, and still trade and for me, it is abundantly clear that the first advice or rule of trading I ever heard was the most accurate. "Scared money never wins". When I trade with a supplemental paycheck, I am profitable. Without that, I press, make lots of mistakes.....lose. With a well capitalized account, and a reasonable trade plan, you can daytrade and build wealth. America is great, you can do both here and enjoy freedom.
Yep, scared money means you don't or can't fully embrace the risk. That's just going to cause errors, 2nd guessing and overall bad trades. You have to be willing to pony up your set amount to see if your edge will work out in any of the unique market moments. Good thoughts bud
Exactly, I don't even know why people ask these questions. If you only have a 30k account it seems highly unlikely you have a decent plan and/or the number of years of experience to even consider trading full time. It really just sounds like lazyness and not wanting to "work", betting on trading in order to not work in the same way fools buy lotto tickets.
On something like futures that are highly leveraged you don't need HUGE amounts of cash like you do on stocks to achieve the same profit. In fact the bigger issue with futures is people overextend and then leverage amplifies their poor money management losses. People are warped if they think they need to roll $30k worth to pay bills off futures. Unless you have a nasty drug and gambling habit, or live in a house you can't afford you don't need to play with $30k to make a decent living off futures. It's those that swing for the fences and want to make a million bucks by next week that are doomed to fail.
of course you don't NEED 30k with futures but with the leverage involved you should have more than 30k pretty quickly to the point it negates having to ask the original question. To me if you have to ask if X amount of capital is good enough to quit your job then your not ready. Your methods and track record should make it painfully obvious if your ready or not.